2016-02-27zerohedge.com

What we find is that while the current valuation of expected future free cash flows to equity holders (i.e. market cap of Wilshire) has increased by some 55% since the end of 2011, the actual free cash flows of US corporations have only increased by 4%.

...

What we find is that the epiphany trigger occurs when YoY growth of free cash flows to equity holders drops down to or below zero. The last two bubbles began their burst when medium term moving average of free cash flows dropped to zero. We see the very same pattern occurring presently. Today we appear to have just passed the peak stupidity inflection point as seen in the two charts above.

... we should expect a nice bounce in price level from the recent lows (to perhaps somewhere between 2000 -- 2030) accompanied by relative calm before an explosion of volatility and a market price plunge that sends us into the next crisis sometime around May (give or take).



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